Fewer businesses are feeling pessimistic about the future

The latest NZIER Quarterly Survey of Business Opinion show 16 per cent expect a deterioration in general economic conditions over the coming months.

That's well below the 68 per cent in March last year.

Principal economist Christina Leung says most businesses are returning to normal after Covid.

She says the reduced uncertainty is leading businesses to become more optimistic when it comes to hiring and investment.

15 percent of firms are planning to increase headcount in the next quarter.